Walt Disney and DirecTV failed to reach a new distribution deal for ESPN, ABC, and other Disney-owned channels, the companies announced yesterday, resulting in over 11 million subscribers losing access to those networks.
DirecTV subscribers couldn’t watch yesterday’s US Open tennis and college football matches. If the two don’t reach an agreement within a week, customers won’t be able to catch Week 1 of Monday Night Football either.
The dispute stems from the increased fees Disney is seeking, while DirecTV demands more flexibility on how it sells the network’s channels.
DirecTV criticized Disney for prioritizing profits and making it harder for consumers to access content at reasonable prices. Disney responded it offered fair terms and urged it to close the deal.
The standoff highlights that traditional TV providers want smaller, cheaper channel packages, while big companies like Disney are increasing their focus on their streaming services.